boeing supply chain case study

• Automation Supply Chain
• Continuous Improvement
• Last Mile \ Delivery
• Logistics Training and Resources
• Manufacturing
• Procurement/Negotiations
• Supply Chain
• Warehouse/Fulfillment
• Artificial Intelligence
• Entrepreneur
• Robots & Drones
• Self-Driving Vehicles
• *SCM Social Media Channels
• SCT Discussion

Boeing 787 Global Supply Chain Failure | MBA Case Study.

The global supply chain failure with the Boeing 787 has been covered in the media a great deal.  Various SCM related issues are discussed in the case.

Here is the artificial intelligence response when asked: What happened with the Boeing 787 Global Supply Chain Failure?

The Boeing 787 Global Supply Chain Failure was a production and supply chain problem that affected the development and delivery of the Boeing 787 Dreamliner, a wide-body jetliner. The problem arose in the late 2000s and early 2010s and was caused by a number of factors, including issues with the design and development of the aircraft, difficulties with the global supply chain that supported the production of the aircraft, and production delays.

One of the key issues with the supply chain for the 787 was that Boeing outsourced much of the production of the aircraft to a network of suppliers around the world. This allowed for cost savings and increased efficiency, but it also created challenges in coordinating the production and delivery of the various components of the aircraft. As a result, there were delays in the delivery of components, which led to production bottlenecks and delays in the delivery of the aircraft to customers.

In addition to supply chain issues, the 787 also faced other challenges, including problems with the aircraft’s design and development, as well as issues with the materials used in the construction of the aircraft. These problems contributed to the overall production and supply chain failure for the 787.

Overall, the Boeing 787 Global Supply Chain Failure was a complex problem that was caused by a combination of factors, including issues with the design and development of the aircraft, difficulties with the global supply chain, and production delays. The problem had significant impacts on Boeing and its customers, and it took several years for the company to fully resolve the issues and return to normal production levels.

Further Information about the Production Problems with the Boeing 787 Dreamliner.

The Boeing 787 Dreamliner is a wide-body jet airliner manufactured by Boeing Commercial Airplanes. It was introduced in 2011 and is the first commercial airplane to use composite materials for most of its structure.

The Boeing 787 Dreamliner was plagued by production and delivery delays due to a number of factors, including:

• The use of new materials and production techniques:  The 787 Dreamliner is the first commercial airplane to use composite materials for most of its structure. This required Boeing to develop new production techniques, which took longer than expected.
• The global supply chain:  The 787 Dreamliner is a global airplane, with parts sourced from suppliers all over the world. This made it difficult to coordinate production and delivery.
• The complexity of the aircraft:  The 787 Dreamliner is a complex airplane, with over 100,000 parts. This made it difficult to identify and fix problems.

The production and delivery delays of the Boeing 787 Dreamliner cost Boeing billions of dollars and damaged its reputation. The company has since taken steps to improve its production processes and reduce the risk of future delays.

Here are some of the key lessons that Boeing learned from the 787 Dreamliner experience:

• The importance of a strong supply chain:  Boeing underestimated the challenges of managing a global supply chain for a complex aircraft.
• The importance of thorough testing:  Boeing did not adequately test the 787 Dreamliner before it entered service, which led to a number of problems.
• The importance of communication:  Boeing did not communicate effectively with its customers and suppliers about the delays, which led to frustration and anger.

Continuous Improvement Quotes

• “Learning is not compulsory; it’s voluntary. Improvement is not compulsory; it’s voluntary. But to survive, we must learn.” ~ W. Edwards Deming
• “Continuous improvement is better than delayed perfection.”  ~ Mark Twain
• “When you are out observing on the gemba, do something to help them.  if you do, people will come to expect that you can help them and will look forward to seeing you again on the gemba.” ~ Taiichi Ohno.
• “One gets a good rating for fighting a fire. The result is visible; can be quantified. If you do it right the first time, you are invisible. You satisfied the requirements. That is your job. Mess it up, and correct it later, you become a hero.”  ~W. Edwards Deming
• “Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.” ~ Dale Carnegie
• “Boeing has made the necessary changes to ensure that the 787 Dreamliner meets all certification standards” ~ FAA
• “Watch the little things; a small leak will sink a great ship.” ~ Benjamin Franklin
• “Quality depends on good data. It also depends on executive leadership in using that data.”  ~  Juran Institute, Inc.
• “Boeing started a new line for their 787 Dreamliner, creating 1,000 new jobs in South Carolina, giving our state a shot in the arm when we truly needed it.” ~ Nikki Haley
• “Observing many companies in action, I am unable to point to a single instance in which stunning results were gotten without the active and personal leadership of the upper managers.” ~  Joseph M. Juran

Flight and Supply Chain Resources

• 10 Fastest Passenger Planes In The World.
• 10 Passenger Drones and Vertical Take-off and Landing Aircraft.
• Automation Quotes by Top Minds.
• Best Drone Quotes.
• Billionaire Race for Space: Musk, Branson, and Bezos.
• Boeing Builds a 737 Plane in Just 9 Days.
• Continuous Improvement – The Most Important Aspect… START.
• Continuous Improvement Tools: Lean and Six Sigma.
• Jet Engine Maintenance – How Delta Fixes $32 Million Jet Engines.
• SCM Training & Overview .
• Supply Chain Quotes: Take it to the next level.
• Supply Chain Resources by Topic & Supplier.

Walmart using AI to streamline organization.

Apple – The House that Tim Cook Built Documentary.

Target Supply Chain Strategy to Beat Amazon and Walmart’s Fast Delivery.

Supply Chain World magazine

Boeing’s Costly Outsourcing Flight Path

At the turn of the 21st century, Boeing embarked on a bold strategy with the development of the 787 Dreamliner, aiming to revolutionize the aviation industry through extensive outsourcing. The objective was clear: reduce costs, accelerate production, and leverage the expertise of global partners. This strategic pivot sought to transform Boeing’s operational model, capitalizing on the efficiencies and innovations offered by a diverse supplier network spanning continents. However, the endeavor to reshape aerospace manufacturing through outsourcing was fraught with complexities and unforeseen challenges, casting a shadow over the anticipated benefits of this expansive global collaboration.

The Turbulent Skies of Global Supply Chains

Boeing’s foray into extensive outsourcing introduced a level of complexity that would test the resilience and adaptability of its supply chain. With over 50 suppliers from around the globe contributing to the 787 Dreamliner, coordination and quality control became Herculean tasks. This vast network, while a testament to globalization’s potential, also exposed Boeing to risks of delays, quality discrepancies, and communication barriers. The consequences were significant, with the Dreamliner’s launch marred by setbacks, including technical issues that led to an emergency landing during a test flight due to an unexpected fire. These challenges underscored the perils of over-reliance on a fragmented supply chain, where the intricacies of integrating components from myriad sources could jeopardize not just timelines but the very safety and reliability of the end product​​.

Comparative Turbulence: Boeing vs. Airbus

The contrasting approaches of Boeing and Airbus to outsourcing offer a lens through which to examine the strategic choices in aerospace manufacturing. While Boeing pursued a path of extensive outsourcing, Airbus has opted for a more balanced approach, emphasizing greater control over its supply chain. This strategy has enabled Airbus to maintain a more consistent and reliable flow of materials and components, minimizing disruptions and safeguarding quality. The tale of these two giants serves as a cautionary narrative on the risks and rewards of outsourcing strategies, highlighting the delicate balance between leveraging global capabilities and retaining sufficient control to ensure product integrity and supply chain resilience​​.

Navigating Back to Calmer Waters

In the wake of the challenges faced with the 787 Dreamliner and 737 MAX, Boeing has initiated a strategic reassessment of its outsourcing model. Acknowledging the pitfalls of overextending its supply chain, the company is now focused on bringing more work in-house, a move aimed at regaining control over critical processes and enhancing the integration and oversight of its supplier network. This shift signifies a broader recognition of the need for a balanced approach to outsourcing—one that weighs the advantages of global collaboration against the imperative of maintaining quality, safety, and reliability. Through strengthened partnerships, rigorous supplier vetting, and enhanced communication channels, Boeing aims to fortify its supply chain, ensuring that future endeavors are grounded in lessons learned from past experiences​​​​.

Reflecting on the Horizon

Boeing’s journey through the complexities of outsourcing in aerospace manufacturing offers valuable insights into the dynamics of global supply chains. As the company charts a course towards recovery and growth, the lessons gleaned from the Dreamliner and 737 MAX projects will undoubtedly influence its strategic decisions, guiding a more measured and mindful approach to outsourcing. For the aviation industry and beyond, Boeing’s experience serves as a pivotal case study on the importance of balancing global collaboration with strategic oversight, underscoring the need for resilience, adaptability, and control in the ever-evolving landscape of international manufacturing.

In sum, Boeing’s outsourcing saga, marked by ambition and adversity, provides a compelling narrative on the intricacies of global supply chain management. As the company looks to the future, embracing a philosophy of cautious optimism and informed strategy, the aerospace sector watches closely, poised to learn from Boeing’s endeavors to navigate the turbulent skies of global outsourcing.

• Simple Flying: Looking Back: Boeing Repeatedly Burned By Outsourcing
• Supply Chain Magazine: The Boeing 787 Dreamliner: A tale of TERRIBLE supply chain management
• IndustryWeek: Boeing’s 737 Max Software Outsourced to $9-an-Hour Engineers
• ← S&P Global Strategies for Future-Proofing Global Supply Chains
• U.S., Japan, and India Forge New Paths in Defense →

• Boeing & Aerospace

Boeing 787’s problems blamed on outsourcing, lack of oversight

Share story.

Boeing’s 787 Dreamliner has suffered numerous electrical system flaws beyond the battery problems that led to its current grounding, according to engineers with knowledge of the situation.

Company engineers blame the 787’s outsourced supply chain, saying that poor quality components are coming from subcontractors that have operated largely out of Boeing’s view.

“The risk to the company is not this battery, even though this is really bad right now,” said one 787 electrical engineer, who asked not to be identified. “The real problem is the power panels.”

Unlike earlier Boeing jets, he said, the innards of the 787 power distribution panels — which control the flow of electricity to the plane’s many systems — are “like Radio Shack,” with parts that are “cheap, plastic and prone to failure.”

Most Read Business Stories

• June 5 is last day to claim WA's $50 or $120 tuna and chicken rebate
• Jury finds Boeing stole technology from electric airplane startup Zunum
• Boeing CEO speaks out against growing isolationist rhetoric
• Costco plans to stop selling books year-round
• Homebuyers are starting to revolt over steep prices across U.S.

Any malfunction in a major system, such as the power panel fault that caused a United 787 flight to divert to New Orleans in December, must be reported to the Federal Aviation Administration (FAA), though the data is not public.

Another engineer said the number of such faults reported for the Dreamliner is roughly on par with those on Boeing’s previous new jet, the 777, but “on the 787, one big difference is, there’s a preponderance of electrical faults.”

A senior Boeing engineer not directly involved with the 787 said he believes the company’s early delegation of control on 787 outsourcing to multiple tiers of suppliers is now coming back to bite the jet program, though it made belated efforts to tighten up oversight of suppliers.

“The supplier management organization (at Boeing) didn’t have diddly-squat in terms of engineering capability when they sourced all that work,” he said.

Boeing spokesman Marc Birtel declined to answer specific questions for this story, citing the shortage of time, but denied that Boeing’s oversight of its 787 suppliers was insufficient.

“Our standards and expectations for design, production, quality, and performance have always been, and remain today, as high on the 787 as they are on any other commercial program,” Birtel said.

Outsourcing gone awry

Boeing faces an indefinite grounding of the Dreamliner because of a battery fire on a 787 in Boston and the smoldering of another battery on a flight in Japan a week later.

A National Transportation Safety Board update on Friday said an investigator will travel to a manufacturer in France to examine a battery contactor, which connects a wiring bundle from the airplane to the battery.

Since the battery and its monitoring system were made in Japan, and all the connected pieces were integrated by French company Thales, blaming outsourcing for that and other electrical system faults is a reflexive response among Puget Sound-area employees and observers.

Yet Boeing has never made batteries, and the electrical systems on all its jets have always been sourced from outside suppliers, just like the engines and the landing gear. In that respect, the 787 is not different from Boeing jets like the 777 and the 737, both renowned for their reliability.

However, what is very different on the 787 is the structure of the outsourcing.

On the Dreamliner, Boeing contracted with a top tier of about 50 suppliers, handing them complete control of the design of their piece of the plane.

Those major partners had to make the upfront investment, share the risk and own their design. Each was responsible for managing its own subcontractors.

“For the 787, they changed the structure” of the supply chain, said Christopher Tang, professor of business administration at the UCLA Anderson School of Management and lead author of a much-cited 2009 case study of outsourcing on the 787 . “You only know what’s going on with your tier 1 supplier. You have no visibility, no coordination, no real understanding of how all the pieces fit together.

“With a brand new design and so many parts and so many players, it’s a major challenge,” Tang said. “Can the management team trace all the way down the tree to every single supplier and unit? That’s really difficult.”

On the United flight in December, a short circuit and electrical arcing were caused by a fault in a module that controls a generator and plugs into the power panel motherboard.

Tiny sparking

That sparking inside the circuit boards was tiny — Boeing vice president Mike Sinnettdescribed it in an interview last month as “a low-energy arc that lasted milliseconds, very small”— and produced no real risk to passenger safety.

But it caused the cockpit instruments to indicate that one of the plane’s six generators was down. And though the plane’s multiple alternate power systems easily handled that, the pilot diverted out of caution.

Following that in-flight problem, United in late December reported continuing “sporadic issues with our 787 generators and power distribution panels.”

Sinnett said last month that, “While we don’t have the specific exact root cause, the issues have all been traced back to a single lot of (circuit) boards manufactured at one time by a subtier supplier.”

Three years before the 787 was even launched, a paper presented internally at Boeing in 2001 by eminent airplane structures engineer John Hart-Smith predicted the problems that would arise from excessive outsourcing.

Now retired and living in Australia, Hart-Smith said that he is not an electrical systems expert but trusts Boeing’s technical experts in the systems group — “I know a few of them very well” — to resolve the latest battery problem.

Nevertheless, he said, the underlying conclusions of his outsourcing paper still apply.

On the 787, he said, Boeing management thought it could outsource risk and responsibility along with most of the work.

That’s not possible, he said, because when something goes wrong with a critical component from a supplier, “It’s Boeing that the FAA holds responsible to resolve the problem, and it’s Boeing that pays most of the associated costs.”

Outsourcing specs

Traditionally, he said, Boeing’s in-house experts created detailed specifications for every part of the plane made by suppliers, and had the in-house technical capability to closely monitor whether the work came up to spec.

“They needed complete knowledge of what was going on,” said Hart-Smith. “I warned that if they outsourced too much work, the day would eventually come when there wouldn’t be enough in-house capability to even write the specs.”

The senior Boeing engineer with indirect knowledge of the battery and electrical system troubles believes that’s what happened.

“Internally, we may not have the engineering horsepower required to understand the depths of the (battery system) problem as quickly as we prefer,” he said. “We let too much capability slip away from us.”

Nevertheless, he remains optimistic that the 787 program can be turned around.

Of the battery problem, he said, “We’ll get it fixed. That’s what Boeing does. We bet the company on our products. This is no different.”

He said he doesn’t believe the engineering union, set to vote this month to authorize a strike, will go out in the midst of the 787 crisis.

“Nobody is going to do any striking until we get this airplane fixed,” he said.

This engineer also said that management recognized the shortfall in supplier oversight a couple of years ago and has staffed up its supplier management organization since then.

Boeing spokesman Birtel echoed that.

“We have a significant effort under way with our suppliers to address reliability issues … (and) help reduce the frequency of parts replacements,” Birtel said.

On a conference call last week, Boeing chief executive Jim McNerney said the company is “making progress” on strengthening supplier oversight.

“We have done a lot to increase the visibility down through our supply chain,” he said.

“As to our quality flow down through our supply chain, we have very robust processes,” McNerney added. “And if we miss something along the way, we’re going to fix it. But we do of course rely on our partners.”

The Boeing engineer with direct knowledge of the electrical systems is not optimistic.

“We talk to supplier management all the time,” he said. “These parts are such bad quality.”

To catch and eliminate minor system faults that he blames on persistent problems with the quality of parts, Boeing has routinely been flying nine or 10 pre-delivery flights of each 787 before it hands the plane over to a customer, he said.

On its other jets, Boeing typically makes just two pre-delivery flights, one by Boeing, then one by the customer.

Battery-system probe

The current crisis on the 787 is due to a serious electrical problem somewhere in the battery system.

Before that, in 2010, a major disaster was narrowly averted when an electrical panel shorted and a severe fire broke out on a 787 test flight.

Boeing says the specific issue that caused the 2010 short “was identified and resolved” before the plane went into passenger service.

Compared with those problems, the recurrent power panel faults that occurred last year — Boeing said there were at least four incidents — didn’t pose anything close to the same safety risk. When that United flight diverted to New Orleans in December, passengers suffered only a major inconvenience.

But the 787 electrical engineer said that when the battery problem is resolved and the Dreamliners fly again, more power panel problems will likely surface, and could lead to more diversions that would further damage the jet’s reputation.

“To the public, it’s still electrical,” he said.

He said the company has been to focused on individual, narrow fixes.

“We have not done a real redesign,” he said. “We should be examining the entire electrical system.”

Dominic Gates: 206-464-2963 or [email protected]

Case Study: Boeing Supply Chain Challenges during the Manufacture of Boeing 787 Aircraft

Boeing supply chain challenges during the manufacture of boeing 787 aircraft.doc, term paper, 2010, 18 pages, grade: a, carol mueni (author).

Case Study Background

Major supply challenges suffered by Boeing Communication failure Quality control challenges Delivery time challenges Managerial problems Resources allocation challenge Labour and technology challenges Supplier’s Capability Assessment Challenge

Solutions to Supply Chain Problems Supply Chain Managemen Supply Chain Strategies Leadership experience Proactive supply chain managemen Customer Relations Managemen

• No comments yet.

Similar texts

Imported Metal Packaging Supply Chain Management in the Manufacturing Industr...

The Impact of Direct Digital Manufacturing on Supply Chains

Supply Chain Performance Measurement & E-Business Supply Chain Management...

Fashion-Specific Supply Chain Challenges and Fast Fashion as a Suitable Solution

Supply Chain Management. Case Study on Amazon

Supply Chain Management

Die Supply Chain Scorecard. Die Balanced Scorecard im Supply Chain Management

Optimierung der Supply Chain unter Verwendung von Tabellenkalkulation

Netzwerkübergreifendes Supply Chain Risiko-Management durch moderne Informati...

Omni-channel Retailing. Impacts and challenges on the supply chain

Die Blockchain-Technologie im Supply Chain Management. Chancen, Risiken und A...

Cases in CSR. Success of Companies Voluntarily Implementing Issues Related to...

Die Supply Chain Balanced Scorecard und ihr Nutzen für das Supply Chain Contr...

Controlling im Supply Chain Management

Supply Chain und Produktmanager. Anforderungen an Ausbildung und Tätigkeiten ...

Managerial perception and assessment of catastrophic supply chain risks

Ansätze zur Integration des betrieblichen Umweltschutzes in das Supply Chain ...

Controlling der Supply Chain

Simulationsstudie zur Analyse der Abhängigkeit zwischen Supply-Chain-Resilien...

Upload papers

Your term paper / thesis:

- Publication as eBook and book - High royalties for the sales - Completely free - with ISBN - It only takes five minutes - Every paper finds readers

Publish now - it's free

• Engineering & Technology
• Industrial Engineering
• Supply Chain Management

Case Study BOEING 787: GLOBAL SUPPLY CHAIN MANAGEMENT

Related documents

Add this document to collection(s)

You can add this document to your study collection(s)

Add this document to saved

You can add this document to your saved list

Global supply chain quality integration strategies and the case of the Boeing 787 Dreamliner development

2021, Procedia Manufacturing 54:88-94

Managing the quality of global supply chains is critical for the success of global companies. Quality disseminates through the supply chains. Supply chain quality integration facilitates each company to use its main expertise which can lead to higher quality and cost reductions. Digital audits enhance the possibilities to ensure the production quality at the suppliers. A global supply chain quality integration is illustrated through the case of the Boeing 787 Dreamliner development. The development process was a major challenge for Boeing because not only several innovations were introduced in the 787 plane, but the supply chain quality integration reached new levels for the company. The 787-program had process, management, labor, and demand risks. The first 787 plane was delivered three years later than planned and the budget was exceeded by 10 billion USD. To solve the issues, Boeing created the Production Integration Center. It sent engineers and production workers to its suppliers in several countries of the world to smooth the supply chain quality integration. Boeing supported its suppliers with its knowledge. Onsite cameras were used as digital audits. The Production Integration Center intervened when it estimated delays in the shipments. Boeing successfully solved the issues, but they cost the company a lot. Examining this supply chain restructuring case can help supply chain managers to diagnose and overcome issues in supply chain quality integrations.

Related Papers

Production Planning & Control

Rafaela Alfalla-Luque

Procedia Technology

ali taei zadeh

Alie Dametew , Frank Ebinger

Rising global competition and the increasing costs of natural resources today as well as customers demands for higher manufactured goods quality, better product selection, and improved customer service have created new challenges for manufacturing industries. Even though research has suggested that supply chain management and supply chain integration are distinct potential, little is known about their performance effects and about the contextual conditions under which they are effective. Based on a literature survey and expert analysis of manufacturing firms, we empirically investigate the effects of supply chain integration on quality performance using Analytical hierarchical Open Decision maker analysis. We argue our study in the dynamic capabilities view and contingency theory. We investigate that supply chain integration positively affect quality performance. our result indicates that knowledge, technology, production &design and resource integration directly related and impact on quality performance for manufacturing companies.

IEEE Transactions on Engineering Management

Xiande Zhao

There are several influential risks in an aerospace supply chain which disruption is one of the most significant types. Many researchers believe that the impact of disruption is more considerable than other risks. There are two main reasons for aerospace supply chain disruption, which are ―increased complexity‖ and ―single sourcing‖. The article explains aspects of these causes as well as related solutions for each one of them. The main solutions for these two disruptions including: integrating and synchronizing planning and execution, mean and variance of lead time reduction, investing in visibility, building flexibility in supply chain, fulfilling robustness strategy, collaborating and cooperating with supply chain

Independent University, Bangladesh

Md. Saiful Alam

Crown Logistics Limited (CLL) is a hypothetical company used as an example, in Bangladesh CLL is facing loss in their business currently. So, this research intends to investigate the external antecedents and competitive environment in relation to supply chain outcomes moderated by product characteristics and government policy of this company. It is a correlational study aimed to measure the correlation among the study variables- external antecedents, competitive environment, product characteristics, government policy and supply chain outcomes. Questionnaires will be distributed among all connected stakeholders of supply chain management of the company.

International Review of Mechanical Engineering (IREME)

Messias Borges Silva

Sakun Boon-itt

International Journal of Quality & Reliability Management

Purpose The purpose of this paper is to develop a theoretical basis for integration of quality management (QM) and supply chain management (SCM). For that purpose, some common practices of both approaches are identified as having impact on the four balanced scorecard perspectives. Design/methodology/approach The main concepts of SCM and QM were reviewed from the literature in order to develop key practices that are common to both approaches. Findings The findings suggest that the synergies of QM and SCM can promote the integration of the approaches which will promote a set of significant organizational benefits. Originality/value This study focuses on the integration of QM and SCM through their common practices. This issue has not been broadly explored and for that reason this paper contributes to the understanding of the critical factors for an effective integration of supply chain QM.

International Journal of Operations & Production Management

Carlos Mena

Purpose – The purpose of this paper is to explore the configurations of supply chain integration. Design/methodology/approach – The authors use qualitative data from manufacturers shortlisted for the UK’s Manufacturing Excellence awards over three years. Detailed processes and policies of 68 manufacturers are analysed. Findings – Process structure and product newness require different supply chain configurations, which change as products mature. Supply chain integration is dynamic, and the extent of collaboration between suppliers and customers will be different at different moments in time. The authors define and discuss four key supply chain configurations: customised; ramp-up; recurring; coordinated. Research limitations/implications – Future studies on supply chain integration should be controlled for the variation in the configurations. A limitation is the use of data which were derived for an award. The paper explains how the authors have mitigated the associated risks. Practi...

RELATED PAPERS

Raam op Rusland

Andreas Umland

Revista Brasileira de Ornitologia

João Marcelo Holderbaum

Geraldine Doucet

Zeitschrift für Naturforschung B

Maria J . Melo

Journal of Science and Medicine in Sport

Gregory Kolt

Journal of Business Ethics

Ricardo Chiva

Journal of Civil Engineering and Architecture

Hesham El Naggar

John Cidlowski

bioRxiv (Cold Spring Harbor Laboratory)

Jonathan White

IEEE Electron Device Letters

David Brusilovsky

Interdiciplinary Journal and Hummanity (INJURITY)

Heru Subiyantoro

KCL毕业证文凭伦敦国王学院本科毕业证书 英国学历学位认证如何办理

Revista U.D.C.A Actualidad & Divulgación Científica

Keilyn Garcia

2020 XXXIIIrd General Assembly and Scientific Symposium of the International Union of Radio Science

Nikolaos L Tsitsas

Stanisław Bieniewski

在线购买brock毕业证书 加拿大布鲁克大学毕业证毕业文凭证书注册证明原版一模一样

World Academy of Science, Engineering and Technology, International Journal of Computer and Information Engineering

ong-art chanprasitchai

I. Pozzoni, Per una nuova ontologia «chorastica», in “NOVA”, Messina, Il Rabdomante, XVIII, n. 70, 2018, 12-14.

Ivan Pozzoni

Iet Radar Sonar and Navigation

tracy haack

ACTA Universitatis Cibiniensis

Najeeb Khan

Journal of Gastrointestinal Surgery

Isaac Samuel

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Advertisement

• Business-Finance
• Featured Blogs
• Distribution
• Component Sourcing
• Buying Strategies
• Hot Products
• Top Companies
• Industry Directories

Boeing Dreamliner: Case Study for Design & Supply Chain

• Boeing Dreamliner: Case Study for…

When a Boeing 787 lifted off this week on a test flight as part of its rehabilitation from battery problems, it flew in part on the winds of design and supply-chain collaboration.

The aircraft manufacturer endured one of the biggest crises in its history when two of its planes experienced problems with the lithium-ion batteries that serve as backups and auxiliary systems for the leading-edge aircraft. Its 787s have been grounded while engineers have worked to determine the cause of the battery fires and then suggest fixes.

Boeing has suggested a series of design modifications (see graphic below) to the battery packs to protect individual cells and better seal the battery itself to prevent fires. (Boeing's chief project engineer for the 787, Mike Sinnett, emphasized in a recent press conference that no fires occurred in either incident. Instead, what vented from the batteries was vaporized electrolyte.)

What have we learned so far? A month ago, some pointed fingers at Boeing's operational management (See Lessons From Boeing’s Dreamliner Supply Chain Missteps .)

Others blamed the supply chain itself for the mishaps. (See Blame the Supply Chain for Boeing Dreamliner Problems? ) Boeing created a completely new design and supply chain for itself as part of its groundbreaking 787 project. OK, so maybe they bit off more than they could chew on a new aircraft design.

But you can't blame the supply chain itself. You can point fingers at certain suppliers, and clearly there was a bit of that in the early weeks after the accidents were reported. But — and this is a huge but — that ultimately wastes precious time. In this case, the partners minimized the finger pointing (at least publicly) and got laser-focused on identifying the problems and creating solutions.

Sinnett noted in the Tokyo press conference that within a week of the failures, Boeing had 500 engineers dedicated to the case — engineers who had worked on space stations, on satellites and rockets, and on other airplane programs.

They brought in suppliers, partners, and customers.

By the third week, they had assembled a team from automobile manufacturers, government organizations, and universities to understand what their testing should be and where manufacturing might have been weak.

“We all worked as one team to try to understand what had happened and make sure it wouldn't happen again,” Sinnett said.

They've spent 200,000 hours in engineering and design to understand and correct what may have happened.

Here are some of the fixes:

• Boeing teamed with Thales, the provider of the integrated power conversion system, and battery maker GS Yuasa to develop and institute enhanced production standards and tests to reduce any variation in the production of the individual cells as well as the overall battery.
• They added four new or revised tests to screen cell production.
• Boeing, Thales, and GS Yuasa will lower the highest charge allowed in the battery monitoring unit and charger and raise the lower level allowed for discharge.
• Inside the battery charger, each cell will be better insulated. An electrical insulator is being wrapped around each battery cell to electrically isolate cells from each other and from the battery case, even in the event of a failure.
• The battery will now be enclosed in sealed stainless steel.

Decades ago, the Johnson & Johnson corporation could have vaporized if it had mishandled the Tylenol poisoning scare. Instead, it became a case study on how to do consumer crisis management correctly.

My bet is that Boeing will end up with a similar legacy for supply-chain crisis management.

Author:  Brian Fuller

Brian Fuller, a journalist for 30 years, is editor-in-chief of Cadence, responsible for content creation and content marketing. He spent nearly 20 years at EE Times, where he held various positions including editor-in-chief and publisher. From 2011-13 he was involved in a groundbreaking industry project driving around North America in Chevy Volt, interviewing engineers and entrepreneurs as part of the Drive for Innovation program. He also served as editor-in-chief of EBN in early 2013.

Related posts

18 Comments

This is indeed a good case study . It shows that rather than playing the blame game and finding and firing the scapegoat if the focus is put on solving the problem from its root then the results have a long term positive impact on the company's image as well as they encourage the team members to come out with solutions without hiding the problems.

IT would have been easy for Boeing to put he blame on the project manager and sack him and temporarily save the face in the eye of the public but the problem would have remained unsolved.

@Rich, good point. But I have to think the challenge scales. At 200,000 engineering hours dedicated to this investigation/fix, something's gotta give elsewhere. It would be the same if you had a company with 20 engineers and 10 suddenly were diverted to solving a field failure, wouldn't it?

@Rich – I don't think Boeing will take the chance to use any counterfeit product in its aircraft. I am sure that any component that enters in the planes' production lines can be traced back to its original manufacturer.

We can assume that 500 hundred engineers cannot all be wrong and the problem is already fixed. But question is whether Boeing customers will be willing to order more dreamliners.

That is true,but you also know that most Airports won't be economical this way.

When it comes to Cargo Transportation you need a Hub and Spoke Model [Where the Spokes are usually Railways and Roadways] to make things more efficent.

Its very surprising that something like this happened with boeing product. But they learnt lessons spent time in analyzing the root cause and fixed design issue its great Sure it cannot be a simple case of counterfeit component.

Very nice article

Apart from all the direct inventory related costs such as transportation and freight costs, there's also an opportunity cost associated with making the inventory arrive quicker than it's needed. If the inventory arrives earlier than you need it, normally you need to pay for it earlier as well. Hence, the opportunity cost here is the alternate way the business could have used those funds in something more profitable rather than paying off the supplier.

“ When it comes to Cargo Transportation you need a Hub and Spoke Model [Where the Spokes are usually Railways and Roadways] to make things more efficent.”

@tech4people: I am a big fan of the hub and spoke model too and many companies have utilized it to achieve operational efficiencies. However, it an only work when you have a large number of destinations scattered across the country. If the volume is not there, it would make more sense to do direct transactions between points rather than hub and spoke model.

Yes that's true.

You need scale for the Hub and Spoke model to work most effectively.

But then,if you track Infrastructure Spending closely;you would also have noticed that Its very expensive to Start,Run and Maintain Large-scale Infrastructure Projects (like Airports and Seaports);if there is no Scale.

Best example today is Spain(and in the near future-China).

So many independent regions there tried to build their Own Airports without first figuring out which Airline is going to fly there and for what?

A lot of complementary Skills and resources are required(in addition to scale) to make sure such Large-Scale Infrastructure Projects make money and pay for themselves over time.

Atleast in the case of Air-Cargo its Okay (and relatively easy)to Shift the Traffic elsewhere (to a less populated/Less Developed region) without much Hassles;but with Passenger Traffic lot more Variables are involved.

There are times when I don't know whether you are Serious or Joking.

This is one of those times.

Let me just say this much-Linear Optimization works in some Situations not all.

Transportation is a big part of both supply chain and overall cost of the product. Getting the inventory at right time and right amount is most crucial. Keeping the inventories low and demand high is the key for profit.

This is defnitely an impressive figure to show the dedication towards solving this battery problem. If thinking on the other hand, is this figure slightly inflated for PR purpose?

@t.alex, I don't think that would surprise any of us (inflated numbers), however this is a make or break moment for these guys… they have to get this done and get it done now. Boeing doesn't want “poorly engineered” on its resume. 

“ Atleast in the case of Air-Cargo its Okay (and relatively easy)to Shift the Traffic elsewhere (to a less populated/Less Developed region) without much Hassles;but with Passenger Traffic lot more Variables are involved”

@Ashish: Exactly. And Southwest was perhaps the first airline to realize that people are not like Cargo. They don't want to travel through the hub and spoke model and would rather move from point to point. The airline was able to achieve this at the same time keeping the prices lower than those airlines operating on the H&S model.

“ Getting the inventory at right time and right amount is most crucial. Keeping the inventories low and demand high is the key for profit.”

@Himanshugupta: Just to add to it, “at the right place” is becoming equally important as companies move towards decentralized warehouses where your suppliers deliver directly to your local warehouse or even directly to your customers and you don't have to move the inventory around yourself. With the help of better forecasting and planning, companies are able to make this happen.

Keeping the inventories low and demand high is the key for profit.

Such a Brilliant and Simple Statement;Yet it holds the Key to All of the Major Issues which afflict Supply Chains today.

Excellent Statement!!!

I think in the case of Domestic Airlines the Hub-Spoke model just did'nt cut it anymore(anywhere in the World).

For International Flights though some Major Global Carriers[Emirates, Qantas, Singapore,Etihad,Qatar,Thai,BA,JAL] are basing their Entire Strategy around Hub-Spoke Model where they offer Ticket prices much lower than Direct Carriers.

That works in some cases particularly since most of Africa,South Asia, Southern/Eastern Europe do not have Quality Airlines with A Good Range of Destinations  today.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Post comment

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Distribution Services

MyBoeingFleet

Case Studies

See how our solutions are helping customers across the aerospace and defense industry

As a provider of integrated supply chain solutions we combine global parts distribution and services into one integrated modular approach, tailored to our customers. Learn how we are supporting our customers across the aerospace and defense industry

Boeing and ITP Aero

August 2023.

Engine component lifecycle support: Delivering inventory solutions across production and maintenance, repair and overhaul

Airline MRO Parts

Global inventory distribution for maintenance, repair and overhaul

February 2023

From road to sky: supporting the design and production of a roadable aircraft

Kawasaki Heavy Industries

September 2022.

Customized parts and services solution for aerospace production

Supporting operational transformation across a defense program

PFW Aerospace

November 2021.

Parts engagement for tubing systems in aircraft through bin management solutions.

Supporting APU and components maintenance, repair and overhaul (MRO)

Middlesex Aerospace

February 2021.

Improving efficiency for landing gear component assembly

Kongsberg Defence and Aerospace

January 2021.

Maintaining operational efficiency - Supporting Norwegian Aerospace & Defense Sector

Effective inventory management and customer service at HAECO.

Find out details on our latest thinking and opinions relating to key topics impacting the market.

Be the first to know. Sign up today.

For information on our latest news, promotions and more.

Special characters are not accepted. Please revise.

HAVING TROUBLE LOGGING IN?

Recover Your Username

Please enter the email address associated with your account to recover your username.

Recover Your Password

Please enter the username associated with your account to recover your password.

Login Assistance

The email address you provided matches multiple accounts. Please contact your Boeing Distribution Sales Representative for further assistance.

Sales department

+1.305.925.2600

[email protected]

Your request has been submitted. Please check your email for login instructions (it may take up to 24 hours). If you have not received an email, Please email [email protected]

Something went wrong. Please contact your Boeing Distribution sales representative for further assistance.

Change Password

Your password has been updated successfully. please login using updated password..

You have already submitted a request. Please wait for the sales rep approval.

Invalid login

Please contact your Sales Representative or email [email protected] for assistance.

Please enter any email address associated with your account.

Login assistance

Your account has been locked temporarily. This could be due to:

-Multiple invalid login attempts

-Your username may be active in another session

Your password will be sent to the " "

The link to login with new password is expired. This could be due to:

-Link was generated before 30 minutes

Please try to reset the password again."

You are about to be locked out due to too many incorrect logins.

Please contact your Boeing Distribution sales representative for further assistance.

If you don't have username, Request a user name below.

USERNAME IS ALREADY IN USE

You have been logged out because another session was opened with this username.

If this is not your username. Request one below.

Maximum Amount of Search

The maximum amount of search queries has been reached. Please Login or request a BoeingDistribution.com account HERE

Authentication Form

Note: A mobile number is required to receive a OTP (One-Time Passcode) on your phone. Please enter your phone number with country code below or on your Profile page.

Note: Please select the desired channel below to set default preference. Changes to default preference can be made in the Profile page.

Register/Receive OTP on your Mobile/Email 

Receive OTP on your Mobile/Email 

Note: To complete the verification, you have to click on the "VERIFY" button after entering the below code in your phone. Once you get a call, please enter the below code. If you are not receiving the call please “click here” to recheck your country code and mobile number.

Note: is already registered. If you want to activate this number click the 'VERIFY' button.

Select Your Channel :

Username is incorrect, Please try again.

Password is incorrect, Please try again

FORGOT USERNAME | PASSWORD?

By logging in, I agree to the following Terms of Use

Need an account or want to link your current Boeing Distribution Services account?

username is already in use

This username is already active in another session.

If this is not your username, please request one below.

ADDITIONAL FEE

An additional Hazmat Products fee may apply at checkout.

Case Study Access

Successfully registered..

The Boeing 787 Dreamliner: A tale of TERRIBLE supply chain management

Boeing’s production of the 787 Dreamliner is almost laughable. It has become such a mess, such a supply chain disaster, that it almost makes you think Boeing execs made Dreamliner decisions in some sort of strange alternative universe, like the Twilight Zone or something. Now I understand that hindsight is always 20/20 so it’s easy to say that things should have been different, but I would have loved to have been in the production meeting where the Boeing execs decided that outsourcing nearly every aspect of the Dreamliner’s production was a savvy business move. This is the same aircraft that Boeing said was one of the most important in its history. It’s the same one that will deploy the latest technology and most revolutionary design in the history of passenger air travel. This is the aircraft that will supposedly set the standard for all aircraft manufacturers to follow in the future. The Boeing 787 Dreamliner is the first of its kind use carbon-composites in its structure. Considerably lighter than its aluminum counterparts, the 787 Dreamliner will operate on 20 percent less fuel, which can mean millions upon millions in savings each year for the major airliners. Naturally, Boeing also thought this was also an ideal time to say, “ F*ck it . Let’s throw out everything we’ve ever known or used in airplane production and use this new, unproven method.” Pretty smart play, right? How did that conversation even start? If it was about costs, it didn’t work. Boeing will tell you that Dreamliner production has been about as cost effective as driving a Hummer. They are paying late-delivery fees out of their butts. More than likely the reason for the outsourcing move came simply because Boeing execs just got cocky. They thought they could use over 50 suppliers from multiple countries across the world and get away with it. They thought they had a tight enough grip on their supply chain that it wouldn’t matter. They thought that outsourcing things like engineering and manufacturing would be as seamless as outsourcing a call center. But there’s a tricky thing about outsourcing. It’s supposed to be used for a company’s non-core areas of business. It’s supposed to be for things like IT, graphic design and website building. I didn’t think it was ever about your core areas of business. So when Boeing outsourced things like engineering and manufacturing, one had to wonder, “If they are outsourcing that, then what are Boeing’s core areas of business?” You just don’t outsource your the areas where you are most competent. If you do, you run the risk of becoming fully reliant on your suppliers. That’s what Boeing did, and now they are paying for it dearly. Boeing even touted the fact by openly saying it was getting a “world of help” (pun intended) on the 787 Dreamliner. It's not that big of a shock to receive parts from global vendors, but Boeing was using so many that you had to wonder if they were still part of Team America. Sources from South Korea, Italy, Japan, Australia, China, Sweden, France and Canada all have significant roles in the production of the 787 Dreamliner. The cogs in receiving supplies from such a vast network of global vendors have taken its toll on Boeing. Boeing was supposed to debut the 787 Dreamliner in a test flight in August 2007 and then achieve first delivery in May 2008. Boeing, however, has been pushing the date back ever since, much to the chagrin of Dreamliner buyers. They finally got the Dreamliner in the air for a test flight in November 2010, but it had to do an emergency landing after an unexpected fire on board. (Go figure) Boeing recently said that they hope to have the plane operational by the 3Q of 2011, but really they should have just said, “It will be ready, when it’s ready.” Boeing has cited everything from a shortage of bolts (seriously) to inadequacies in flight control software for delayed production. What did they expect with their expansive vendor list? Boeing effectively outran the ability to effectively manage the supply chain and in doing so they lost control of the 787 Dreamliner. In fact, I’m not sure Boeing ever had control of it in the first place. The company’s fate with regards to the Dreamliner was always in the hands of its suppliers. Didn't someone present this supply chain danger in a risk management presentation to upper management? They had to have. That’s what large corporations do. So the fact remains that either Boeing execs simply disregarded the warnings, or they were cocky enough to think they were bigger than supply chain management; that they could slip by using a new, cost-effective approach that had never been seen before in Boeing’s 90-plus year history. And we are all seeing how that's working out. Good work, guys.  Want more? Of course you do. You made it this far, so check out how Apple manages it's Supply Chain or Caterpillar Logistics Supply Chain Rule of Thumb . As always, don’t forget to check us out on Facebook , and if you want to get in touch with me personally, hit me up with a message on my personal page: Brett Supply Chain  

Featured Articles

Procurement & Supply Chain LIVE New York: Day 1

Join us for day one of Procurement & Supply Chain LIVE New York – the ultimate virtual event for leaders across North America and Canada …

Four New Sponsors Join P&SC LIVE London 2024

Procurement & Supply Chain LIVE London welcomes Domo Inc, Enable, Synertrade, and Beroe as its latest sponsors …

Four New Sponsors Announced for P&SC LIVE London

Procurement & Supply Chain LIVE London welcomes Alcumus, KlearNow.AI, Bamboo Rose, and Red Havas as its newest sponsors …

New Executives Join P&SC LIVE New York

Procurement & Supply Chain LIVE New York – Just One Day Away

Procurement & Supply Chain LIVE New York Adds Four Speakers

• Panels at Procurement & Supply Chain LIVE New York
• Last Week for Global P&SC Awards Submissions
• DP World: Delivering the ICC Men’s T20 Cricket World Cup
• FuturMaster: Unlocking Untapped Potential in Supply Networks
• Why you Should Automate your Supply Chain Analytics

Case spotlight: Boeing’s Strategic Initiative: Raw Material Supply Chain Risk Mitigation

This case was featured in  Connect , issue 43, January 2020 .

Author perspective

Who – the protagonist.

Andrew Burgess, Senior Manager of supplier performance for aircraft materials and structures at The Boeing Company .

Boeing is a global leader in the design, manufacture and sale of commercial and military aerospace equipment.

Aluminium and titanium are key to Boeing’s raw material production, so if they couldn’t obtain the material they needed to produce parts, airplanes couldn’t be built.

The risks urgently needed to be mitigated as Boeing were at risk of losing supply from one of its largest titanium mills in Russia, with the US Government looking to ramp up trade sanctions on the country.

In 2014 and 2015 Boeing paid over $2.6 million in penalty charges for failing to meet minimum mill scrap recycling requirements.

By 2017, Boeing was collecting almost all of its recoverable titanium scrap, but around 60% of the scrap was classified as non-recoverable.

Boeing is the top US manufacturer exporter, supporting airlines and government customers in 150 countries.

“Boeing relied on suppliers to deliver millions of parts on time and at an acceptable quality standard to assemble airplanes for timely delivery. If even one part was missing, planes could not be delivered, making supply chain risk assessment a critical part of Boeing’s strategy.” Excerpt from the case.

Andrew faced a number of questions. How could the company better forecast its raw material needs? How could it rework its PRA process to better suit raw material mills? Could it better limit errors in the ordering, processing and shipment steps of the supply chain?

AUTHOR PERSPECTIVE 

Placing things into context

Prakash said: “Students really enjoy the realistic context of the case study. This case provides adequate facts and data, so that students can quickly grasp the serious threat to Boeing of raw material supply disruption from aluminium and titanium mills. They appreciate how a large, global, high technology company like Boeing can be quite vulnerable to basic metal supply and demand. Also, the name “Boeing” itself adds to the cache of the case.”

Perfect case

Prakash continued: “The case was written and published prior to the public disclosure of the full extent of the 737 Max problems. In retrospect, I think it is a perfect case to analyse.

“The analysis reveals that Boeing is an extremely well-run company and has good management systems in place to run their business, albeit these management processes can always be improved. The case provides students opportunities to identify these improvements.”

He concluded: “I think cases in the Production and Operations Management field have certain vigour and vitality. They are data rich and usually describe real life situations that students can relate to.

“Personally, I am biased towards Production and Operations management issues because this is where “all the action is.” This is where companies produce products, provide services and contribute to the well-being of society.” 

The protagonist

Educators can login to view a free educator preview copy of this case and its teaching note.

View more cases in the spotlight

Stay in touch with all the latest case news and views in our free newsletter,  Connect .

Read it online or sign up to have it delivered direct to your inbox!

Discover more

• Work & Careers
• Life & Arts

Become an FT subscriber

Try unlimited access only $1 for 4 weeks.

Then $75 per month. Complete digital access to quality FT journalism on any device. Cancel anytime during your trial.

• Global news & analysis
• Expert opinion
• Special features
• FirstFT newsletter
• Videos & Podcasts
• Android & iOS app
• FT Edit app
• 10 gift articles per month

Explore more offers.

Standard digital.

• FT Digital Edition

Premium Digital

Print + premium digital, ft professional, weekend print + standard digital, weekend print + premium digital.

Essential digital access to quality FT journalism on any device. Pay a year upfront and save 20%.

• Global news & analysis
• Exclusive FT analysis
• FT App on Android & iOS
• FirstFT: the day's biggest stories
• 20+ curated newsletters
• Follow topics & set alerts with myFT
• FT Videos & Podcasts
• 20 monthly gift articles to share
• Lex: FT's flagship investment column
• 15+ Premium newsletters by leading experts
• FT Digital Edition: our digitised print edition
• Weekday Print Edition
• Videos & Podcasts
• Premium newsletters
• 10 additional gift articles per month
• FT Weekend Print delivery
• Everything in Standard Digital
• Everything in Premium Digital

Complete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.

• 10 monthly gift articles to share
• Everything in Print
• Make and share highlights
• FT Workspace
• Markets data widget
• Subscription Manager
• Workflow integrations
• Occasional readers go free
• Volume discount

Terms & Conditions apply

Explore our full range of subscriptions.

Why the ft.

See why over a million readers pay to read the Financial Times.

International Edition

• Supply Chain
• Food and Beverage
• Manufacturing
• Luxury Retail
• Case Studies
• Customer Support
• Documentation

Boeing commissioned SIMBA to build a fully integrated supply chain solution capable of tracking F/A-18 wing parts from sub-tier suppliers.

Part tracking for the f/a-18 hornet.

Although most people associate the Boeing brand with commercial aircraft, the company offers a diverse range of products. The American multinational corporation designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services, acting as a critical enterprise and government supplier.

When producing military aircraft, Boeing required extensive manpower to sync data from multiple sources. Specifically, the company worked with over 700 different tables across four data warehouses. These disjointed systems created potential security risks throughout the production process. As a result, Boeing commissioned SIMBA to build a fully integrated supply chain solution capable of tracking F/A-18 wing parts from sub-tier suppliers.

SIMBA’s blockchain-based solution aggregates this segmented data, creating an immutable, transparent supply chain platform for F/A-18 wing parts. SIMBA achieved this functionality by tokenizing all existing wing parts, ensuring supply chain traceability.

In other words, as physical parts make their way from sub-tier suppliers to Boeing, a digital representation travels through the blockchain, generating a permanent record at each step. The resulting ledger ensures the supply chain fulfills critical U.S. Navy criteria:

• Secure and Trusted: The need to set different permissions for supply chain stakeholders.
• Integration: Integrate with legacy systems and track an existing parts catalog.
• Protection: Guard against malicious attacks from adversaries; eliminating corrupt data.
• Unchangeable: Track and trace capability enabled by an immutable ledger of transactions.

SIMBA’s supply chain solution for F/A-18 wing parts increases visibility, enables ongoing data tracking in real-time, and improves trust across stakeholders. Since the early stages of the project, this improved functionality has reduced costly paperwork by 40% , dramatically improving the traceability of each aircraft component. Through this effort, Boeing is taking a proactive approach to supply chain management, implementing solutions before tragedy triggers track and trace forensics. In addition to improved pilot safety, supply chain transparency helps expedite repairs and preventative maintenance. This improvement provides the U.S. Navy with a more reliable fleet, inherently bolstering national defense.

Finally, because blockchain establishes part provenance, there are fewer instances of unknown origin. As a result, 15% fewer sub-tier supplier parts are discarded, reducing costs . This provenance also ensures parts are invariably traceable to the sub-tier level, making the supply chain much more efficient and effective.

We recognized the benefits of blockchain and wanted to begin tracking parts for F-18s using the technology. SIMBA Chain allowed us to quickly set up smart contracts to autogenerate APIs, saving us countless hours and eliminating the need to assign blockchain-focused developers Al Salour, Technical Fellow - Boeing

The Boeing-built F/A-18 is a competent tactical aircraft, forming the backbone of the U.S. Navy carrier air wing. These combat-proven planes deliver cutting-edge, next-generation multi-role strike fighter capability, outdistancing current and emerging threats. However, before combat, F/A-18 aircraft need to be built—herein lies the challenge. With millions of parts coming from multiple sub-tier suppliers, F/A-18 production is a complicated process.

Speaking on this complexity, SIMBA Chain CEO Bryan Ritchie explains, “Historically, email has been the most prominent supply chain communication tool. And while it gets the job done, it also requires a lot of back and forth, offering little protection against bad actors looking to manipulate data. We’re solving this problem by bringing components of the Boeing supply chain into a completely synchronized, automated system. Instead of tracking manually, all digital workflows are codified in the blockchain ledger.”

This continuous, automated, transparent communication underpins SIMBA’s supply chain solution. Instead of working across silos, the blockchain-based supply chain provides invaluable oversight.

Download the Case Study

Build With SIMBA Chain

Privacy preference center, privacy preferences, view our case study.

Building Insights Into Supply Chains: A Case Study

For time-sensitive or temperature-controlled cargo, most shippers will agree that high-quality, real-time tracking information is crucial. Though that technology can be expensive, the investment is easy to justify when it could mean the difference between an on-time delivery and spoiled cargo. But for general cargo, which does not have strict timeline requirements, it can be harder for shippers to justify that cost. And if shippers do decide to invest in tracking devices for general cargo, rarely is the technology good enough to make a sizable difference to their bottom line.

This was the challenge faced by Maersk Inc., a provider of transportation and logistics services. They felt that the potential value of tracking insights into general cargo was too important to overlook.

In a collaboration with Tive Inc., a tracking and software provider, Maersk designed a proof of concept for a means of keeping tabs on thousands of shipments without having to view each one individually. The higher-level view yielded surprising insights, and confirmed the value of tracking general cargo, not just time-sensitive, high-value shipments.

What started as a shared frustration at the lack of affordable tracking technology for general cargo shipments resulted in not only a successful collaboration between two companies, but also a much-needed advancement in tracking technology and shipping analytics, which will help companies make smarter and more cost-efficient decisions across the supply chain.

Please CLICK HERE to download the Case Study.

RELATED CONTENT

RELATED VIDEOS

Related Directories

Tecsys, inc., safeguarding your cargo in a disrupted supply chain, subscribe to our daily newsletter.

Timely, incisive articles delivered directly to your inbox.

Popular Stories

Are We Seeing an End to the Age of Offshore Production?

Senate Mulls Tracking System for U.S. Supply Chains

Diversifying Beyond China: An Imperative for Global Supply Chain Resilience

Why So Many Warehouse Automation Projects Fail

The $10K Shipping Container Looms in Latest Trade Strains

Digital edition.

2024 Supply Chain ESG Guide

Case studies, recycled tagging fasteners: small changes make a big impact.

Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

Moving Robots Site-to-Site

Jll finds perfect warehouse location, leading to $15m grant for startup, robots speed fulfillment to help apparel company scale for growth.

Boeing's Production Slowdown Sends Shockwaves Through Aerospace Supply Chain

Boeing Co’s (NYSE:BA) ongoing production issues are causing uncertainty in its supply chain, as suppliers grapple with fluctuating production rates and the cost of excessive inventory.

What Happened : The slowdown in manufacturing the 737 Max is challenging an already strained aerospace supply chain. The industry has been dealing with price cuts and inconsistent production due to the Covid-19 pandemic and two fatal crashes that grounded the Max worldwide, the Financial Times reported on Wednesday.

Boeing is struggling to meet the demand from airlines due to these supply chain issues. The company’s ability to deliver jets is crucial for maintaining stability in an industry that employs hundreds of thousands of workers.

The Federal Aviation Administration has limited Boeing’s production of the Max to 38 per month. The company is currently producing fewer than that but plans to increase output to 38 in the second half of the year.

Suppliers, some of which are publicly listed companies with market capitalizations in the billions, are feeling the impact. The slowdown is particularly affecting those that do a significant amount of business with Boeing.

See Also: TopGear Says Nearly Bankrupt Fisker’s Ocean ‘Arguably Better Built’ Than Tesla’s Blockbuster Model Y — But Needs To Come With This Label

The CEO of Astronics, Peter Gundermann, voiced concerns about the production rates earlier this month.

"Will they slow down suppliers? They might, it's unclear … What would they reschedule us to? I mean it's kind of a wild guess at this point, nobody really knows,” he said.

Gundermann also noted that while a reduction in shipments would still fall within the company’s guidance, it could result in a revenue loss of $11.5 million.

Kevin Michaels, managing director of Aerodynamic Advisory, criticized that the supply chain issue has been existing for a decade.

"If you've set up rules where your supply chain can't function, you can't get a return on capital, then that means that you're probably going to play Whac-A-Mole when you try to ramp up to a higher rate," he said.

In a statement, Boeing spokesman Paul Lewis told the Financial Times, "We continue to work closely with each of our suppliers as we manage and execute our production rate plans."

Boeing’s production issues have also affected its main rival, Airbus , which is ramping up production to meet demand from airline customers. The supply chain issues are making it difficult for suppliers to keep pace.

Why It Matters : The production slowdown at Boeing comes after a turbulent first quarter for the company. In April, Boeing’s commercial aircraft numbers dropped amid industry turbulence. The current production issues could further exacerbate the situation.

Meanwhile, Boeing’s employees speaking up on safety and quality soared 500% after the 737 MAX incident. The ongoing production issues could potentially impact the company’s efforts to rebuild trust with its employees and customers.

Price Action: Boeing’s stock closed at $175.08 on Tuesday, according to Benzinga Pro .

Read Next: Tesla’s Shadow Looms: Rivian Discounts US, Canada Inventory To Stay Competitive

Photo courtesy: Shutterstock and Wikimedia

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Retirement can be a difficult part of life to navigate, and a financial advisor can help. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.

This article Boeing's Production Slowdown Sends Shockwaves Through Aerospace Supply Chain originally appeared on Benzinga.com .